Board of Directors Meeting – Thursday, January 8, 2004

President, Jack Dhooghe called the meeting to order at 3:10 p.m.

Members present: Richard Martin, David Elliott, Jack Dhooghe, Jamie Johnston, Gene Kear, Verlin Schauer

Absent: Mark Shook

Copies of the Minutes of the December meeting were provided to each Board member prior to the meeting. Richard Martin made a motion that the minutes be approved as presented. Dave Elliott asked for a clarification regarding the CAB interest loan. After discussion it was determined that the minutes were correct as stated, and Dave Elliott seconded the motion. All approved.

The tentative year-end numbers are here. There was a little shock. Basically, if you own a building, your assessment went down. If you just own unimproved land, the assessed value went up.

The CAB met and approved the $2.1 loan. It is a 10-year loan to be paid with FAA grants. The state will loan us the money for interest. Plus the state gave us another $150,000 grant to tie up any loose ends from last year and this year. We paid off the loan for the 35 acres south of the Penkus hangar. The state loan will be in by the end of January.

There is $95,000 in the checking account after the $53,000 payment to Renneberger to pay off the loan. $90,000 of that was moved to savings to earn interest.

We got a check from Harris’s for the $1,400 in back dues. The only past due account at this time is Turner. Legal proceedings are underway.

We received a call from the IRS in Denver stating we will be audited for the 2001 tax year. The IRS has requested a three-day audit. They have limited knowledge about airport operations, and wanted to know what the term "reliever airport" meant.

Nothing new to report. Ordered rubber for the big blade, and that’s the only activity this month.

No plans have been received for any new buildings. After Gene Kear reviewed Mark Shook’s checklist he found it covered everything except nit picky things like, clean your property, or recommending they do something with their drainage. He is still working on the updates.

Discussed the Turner past due account and proposed actions.

A request was made by someone to rent the building for another restaurant. Due to Health Department Requirements it was not a feasible option.

Jamie Johnston requested permission to maintain a west side, walking trail around the perimeter of the airport that meets with the east side walking trails. Permission was granted to privately maintain those trails at no cost to the airport.

Dave Elliott has a box of 2004 Aeronautical Charts if anyone wants a copy.

We also received an aerial photograph of the airport and Dave will make copies available for a small reproduction cost .

Dave Elliott also passed out economic impact brochures that were reproduced and provided to the FAA to support our loan requests.

The proposed airport dues, which are based on a percentage of the county tax assessment, were discussed at length. While it appears the airport has made excellent financial progress over the past year with our grant and loan requests, not all of those funds have actually arrived. Our savings account is minimal, and we cashed the CDs to pay for land acquisition. The suggestion was made that we go ahead and tax the maximum 25% to rebuild lost savings. Dave Elliott suggested that since most of the property on the airport has buildings, the decrease in the county assessor appraised value will automatically provide members with a cost savings. Careful review of last years budget and discussions about projected costs for next year show our annual expenditures will remain at current levels. We still do not understand the terms and conditions for spending the $150,000 state grant, and until we do, it would be unwise to assume operation and maintenance costs will be allowable. A motion was made by Verlin Schauer to pass the maximum 25% tax assessment. Dave Elliott seconded the motion. Those opposed included Jamie Johnston, Richard Martin and Gene Kear.

Richard Martin moved that we provide a token reduction in the tax assessment and bill at 24%. It was seconded by Dave Elliott and passed unanimously.

The meeting adjourned at 5:15 pm.

Respectfully submitted

_______________________________

Jamie Johnston